Sterling Bay looks to cash out of Ace Hotel property in big way

The Chicago developer is seeking $100M for the Fulton Market location

Sterling Bay Andy Gloor and a room in the Ace Hotel, Chicago
Sterling Bay Andy Gloor and a room in the Ace Hotel, Chicago

Sterling Bay is listing the Ace Hotel in Fulton Market, looking for a near-record price for the two-year-old property.

The Chicago developer is seeking $100 million according to Crain’s. The 159-key hotel is located at 311 North Morgan Street. If Sterling Bay gets that amount, the $629,000-per-room price would make it the second most expensive ever in Chicago, Crain’s reported.

Sterling Bay acquired a two-story industrial property on the site for $4 million in 2013, and four years later, the Ace Hotel opened. Bank of America provided Sterling Bay with a $41.5 million loan on the property in 2016. The developer refinanced last year with a $44 million loan from LoanCore Capital, Cook County records show.

The record for most expensive hotel sale was the $697,000-per-key sale of the LondonHouse in 2016 for $315 million, according to Crain’s.

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Shapack Partners jumpstarted the Fulton Market hotel scene when it opened the Soho House at 113 Green Street in 2014. Next month, another hotel will open in a Shapack property when the 182-key Hoxton Hotel debuts at 200 North Green Street.

Meanwhile, work continues on the long-delayed Nobu Hotel at 854 West Randolph Street.

HFF’s Ryan Lindgren and Tony Malk have the Ace Hotel listing. [Crain’s]John O’Brien